Small & Beautiful (Guj)
Shringar Cinemas (61.00) is an integrated film exhibition and distribution company operating chain of multiplexes under the brand name -'FAME'. It is also in food and beverage business thru one of its wholly owned subsidiary. It has major presence in Mumbai apart from Bangalore, Ahmedabad, Surat, Nasik, Pune Kolkatta & Aurangabad. It currently operates 14 properties with 48 screens. For the nine months ending Dec’07 its revenue increased by 60% to Rs 60 cr whereas NP shot up 70% to Rs 12.80 cr. Because of rising disposable income, increasing mall culture and various tax benefits from govt, the future growth potential for the company is quite huge. It has plans to scale up its multiplexes to 150 screens with pan India presence. For partial funding, last year it raised around Rs 90 cr thru FCCB route to be converted @ Rs 90 & 107 per share. Ironically scrip is still available near its IPO price of Rs 53 per share in April 2005. On a standalone basis for FY08 it may register a topline of Rs 85 cr and bottomline of Rs 17 cr i.e. EPS of Rs 5 on diluted equity of Rs 33.85 cr. Meanwhile company is contemplating to get in to film production as well. Share price can easily appreciate 50% within a year.
Gujarat Alkalies (160.00) is the single largest producer of caustic soda in India, with a production capacity of 358,760 TPA. Besides it also produces various other chemicals like sodium chloride, liquid chlorine, hydrochloric acid, chloroform, methyl chloride, hydrogen peroxide, sodium cyanide, aluminium chloride, phosphoric acid etc. Ironically, company’s plants are working at more than 100% capacity utilization against industry average of 70%. In order to reduce the power cost, company has undertaken a windmill project of 24 MW expected to go on stream in coming few weeks. It is further setting up additional windmills for a capacity of 40 MW. On the other hand, company has already finalized monetization of CERs generated from three of its CDM projects and has infact become the first PSU in the country, to get the approval of the host country from MOEF for its CDM Project. To maintain its future growth it is exploring the possibilities of putting up additional projects like expansion of caustic soda by 500 TPD, expansion of hydrogen peroxide by 75 TPD (100% basis) and another captive power plant with a capacity of 90 MW at a capex of Rs 1,100 crore. For FY08 it may clock a turnover of Rs 1150 cr and PAT of Rs 250 cr on a conservative basis. This translates into EPS of Rs 34 on equity of 73.40 cr. Keep accumulating at declines.
Patels Airtemp (70.00) is involved in the design and manufacture of industrial process plant equipments like pressure vessels, heat exchangers, air cooling & air heating equipment, dehumidification plants, air conditioning and refrigeration equipment and coils etc. Hence company’s products that find use in key sectors like oil and gas, refineries, power, fertilisers, chemicals, cement and textiles. It is also into HVAC business, which currently contributes about 15% to the total revenues. Its clientele include Ingersoll Rand, BHEL, Reliance group, NTPC, Indo Gulf, ONGC, Nirma, Nuclear Power Corporation etc. On the back of strong industrial and economic growth, company is sitting on a healthy order book position of Rs 45 crore. On the export front, company is expecting to get more orders from Germany and Singapore. It is negotiating for a waste management project in Singapore and is hopeful to get the same soon. For FY08 it is estimated to report sales of Rs 50 cr and PAT of Rs 5 cr i.e. EPS of Rs 10 on equity of Rs 5 cr. Share price can easily double in 12~15 months. Buy at every declines.
Rajendra Mechanical Industries (135.00), part of the Mumbai based REMI group, is a pioneer in manufacturing of stainless steel welded and seamless pipes & tubes. These pipes and tubes are used extensively in critical process industries such as refineries, petrochemicals, paper and pulp, fertilizers, pharmaceuticals, nuclear plants, etc. IOCL, IPCL, GNFC, IFFCO, Madras refineries, Mangalore refineries, Ranbaxy Laboratories are few among its reputed clientele. It has also developed specialized stainless steel tubing especially for critical power industry. To cash on increasing demand, company has been constantly expanding its production capacity which now stands at 7500 MTPA from 4500 MTPA in 2005. Notably, company has also ventured into power generation thru wind mill and has total installed capacity of 2.25 MW. For the Dec qtr, sales jumped up 55% to Rs 43 cr whereas NP zoomed up 290% to Rs 2.60 cr. Accordingly it can report a NP of Rs 10.00 cr (incl. extra ordinary income of Rs 1.50 cr on sale of property) on sales of Rs 185 cr for FY08 which leads to an EPS of Rs 21 on equity of Rs 4.80 cr. Besides it has the potential to earn an EPS of 25 Rs for FY09 from business operations only.
Rajendra Mechanical Industries (135.00), part of the Mumbai based REMI group, is a pioneer in manufacturing of stainless steel welded and seamless pipes & tubes. These pipes and tubes are used extensively in critical process industries such as refineries, petrochemicals, paper and pulp, fertilizers, pharmaceuticals, nuclear plants, etc. IOCL, IPCL, GNFC, IFFCO, Madras refineries, Mangalore refineries, Ranbaxy Laboratories are few among its reputed clientele. It has also developed specialized stainless steel tubing especially for critical power industry. To cash on increasing demand, company has been constantly expanding its production capacity which now stands at 7500 MTPA from 4500 MTPA in 2005. Notably, company has also ventured into power generation thru wind mill and has total installed capacity of 2.25 MW. For the Dec qtr, sales jumped up 55% to Rs 43 cr whereas NP zoomed up 290% to Rs 2.60 cr. Accordingly it can report a NP of Rs 10.00 cr (incl. extra ordinary income of Rs 1.50 cr on sale of property) on sales of Rs 185 cr for FY08 which leads to an EPS of Rs 21 on equity of Rs 4.80 cr. Besides it has the potential to earn an EPS of 25 Rs for FY09 from business operations only.
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